Everything You Need to Know about Cryptocurrency Ethereum

Everything You Need to Know about Ethereum

In this story, we will talk about Ethereum (ETH), which is not only a cryptocurrency but also a global decentralized platform that helps create several apps.

What is the story of this dazzling coin? What is the story of the coins associated with it? How can it be a global decentralized platform? We will answer all such questions about Ethereum below:

What is Ethereum? When was it created?

Ethereum is a global decentralized platform based on blockchain. It allows users to establish several decentralized apps. The cryptocurrency is also used as a reward given to the miners working on the Ethereum platform.     

Obviously, Ethereum is a global network of computers linked to each other. It aims to create some apps in a decentralized manner, without the need for a server linking all of those systems.

Accordingly, the Ethereum platform can be called a ‘global decentralized platform’.

The ETH can be used for direct payment, and can also be transferred to others.

Who created ETH?

The Ethereum first appeared in 2011 when Vitalik Buterin, a Russian-Canadian programmer, spoke with some of his colleagues about the project. They accordingly supported the idea and launched the currency officially in 2015.

 “I thought [those in the Bitcoin community] weren’t approaching the problem in the right way. I thought they were going after individual applications; they were trying to kind of explicitly support each [use case] in a sort of Swiss Army knife protocol,” Buterin said.

Among the most famous founders of the cryptocurrency are Putrin, Gavin Wood, and Joseph Lubin.

By 2021, only half of the Ethereum coins will be mined (a supply of more than 90 million tokens).

What is the story of Ethereum Classic (ETC)?

The second currency whose name is associated with Ethereum is Ethereum Classic (ETC) which is a separate currency from Ethereum. In June 2016, a programmer hacked the Ethereum platform after spotting a loophole in the DAO code and stole $50 million worth of Ethereum.

Accordingly, the currency developers created what is called fork or ‘hardfork’ through which a code is produced to block the addresses used to hack the currency, allowing them to recover the stolen amounts and prevent any potential hack. This was the main reason behind the launch of Ethereum.

Ethereum Classic is the original chain and Ethereum represents the new chain which is an offshoot of the original blockchain.

Advantages of Ethereum Classic

Ethereum Classic is one of the cryptocurrencies that rely on decentralized systems to operate smart contracts and decentralized apps. It is also based on a non-adjustable blockchain.

The total number of cryptocurrencies to be mined reaches 210 million, of which 200,000 would be mined by 2025. Thus, the coin will remain inflationary to this date, and then will be converted into a deflationary one.

Ethereum Classic is based on Proof-of-Work (PoW) algorithm, while Ethereum is based on Proof of Stake (PoS) algorithm.

Current position of Ethereum and Ethereum Classic  

Ethereum is the world’s second largest cryptocurrency with a market cap of $12.38 billion. Its price reaches $112.45 despite the recent declines.

Meanwhile, Ethereum Classic price reaches $4.48, and ranks 19th with a market cap of $521.34 million.

Finally, Ethereum is used as a means of payment for shopping, sending and receiving products or services anywhere in the world in return for very low fees.

The currency is used for investment in digital assets and conclusion of different kinds of smart contracts.    

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.